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Financial Assurance Instruments

Facilities plan for closure, and sometimes, post-closure. The
funding mechanism for these plans is termed Financial Assurance Instrument
(FAI). An FAI resembles an insurance policy which is available to allow the
state to take over closure or post-closure maintenance and monitoring functions
should an owner or operator be unable or unwilling to fulfill these
duties. FAIs are a constant reminder that the last day of business is not the last day of environmental
responsibility.